Workers owed billions in unpaid wages and holiday pay

A report from the University of Middlesex called “The weighted scales of economic justice: Unpaid Britain interim report” has revealed that workers are deprived of £1.2 billion in wages and £1.5 billion in holiday pay each year. Those working in construction, “food and beverages” and the “sports activities, amusement and education” sectors were particularly vulnerable. The report also found that 1 in 12 workers do not receive a payslip.

Although much of this will be due to crooked employers, some will be down to the complications of the modern workforce. For example, working out pay and holiday rights for casual, part-time, shift or other atypical workers can be tricky and it is easy to make mistakes. Happily we are here to help.

For example, you may be wondering how to calculate holiday entitlement for casual workers when you do not know how long they will be employed? The starting point would be to say that most employer address this by allowing a causal worker to accrue holiday at a specified notional rate (commonly 12.07% of hours worked) which is paid as an additional sum in the final pay packet depending on the length of time worked and the amount of holiday actually used.

For good employers who want to do the right thing but get a bit lost sometimes, the moral of the story is to seek professional advice.

For more information please do not hesitate to contact our experienced Employment team for a free and confidential discussion on 01924 387 110.